Kirkland’s increases revolver to $75 million, extends it to 2021

By Angela McDaniels

Tacoma, Wash., March 1 – Kirkland’s, Inc. amended its credit agreement on Friday to increase its senior secured revolving credit facility to $75 million from $50 million and extend its maturity date to February 2021 from August 2016, according to an 8-K filing with the Securities and Exchange Commission.

In addition, the fee paid on the unused portion of the revolver was reduced to 25 bps from 37.5 bps, the swingline availability was increased to $10 million from $5 million and a $25 million incremental accordion feature was added.

At the closing, there were no outstanding borrowings under the revolver.

The interest rate is Libor plus a margin ranging from 125 basis points to 175 bps with no Libor floor.

The maximum availability under the revolver is limited by a borrowing base that consists of a percentage of eligible inventory and eligible credit card receivables less reserves. As of Friday, the company had about $39.9 million available for borrowing under the borrowing base formula.

Bank of America, NA is the administrative agent and collateral agent.

Kirkland’s is a specialty retailer of home decor based in Brentwood, Tenn.

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